Distributed ledger technology in supply chains: a transaction cost perspective

Item Type Journal paper
Abstract With the emergence of distributed ledger technology (DLT), numerous practitioners and researchers have proclaimed its beneficial impact on supply chain transactions in the future. However, the vast majority of DLT initiatives are discontinued after a short period. With the full potential of DLT laying far down the road, especially managers in supply chain management (SCM) seek for short-term cost-saving effects of DLT in order to achieve long-term benefits of DLT in the future. However, the extant research has bypassed grounding long-term as well as short-term effects of DLT on supply chain transaction with empirical data. We address this shortcoming, following an abductive research approach and combining empirical data from a multiple case study design with the corresponding literature. Our study reveals that the effects of DLT on supply chain transactions are two-sided. We found six effects of DLT solutions that have a cost-reducing or cost avoidance impact on supply chain transactions. In addition, we found two effects that change the power distribution between buyers and suppliers in transactions and a single effect that reduces the dependency of supply chain transactions on third parties. While cost-reducing and avoidance as well as dependency-reducing effects are positive effects, the change in power distribution might come with disadvantages. With these findings, the paper provides the first empirical evidence of the impact of DLT on supply chain transactions, which will enable managers to improve their assessment of DLT usage in supply chains.
Authors Röck, Dominik; Sternberg, Henrik & Hofmann, Erik
Projects Hofmann, Prof. Dr. Erik; Röck, M.Sc. Dominik; Mathauer, M.A. HSG Mathias; Enthoven, M.Sc. ETH Maximilian & Langner, M.Sc. Daniel (2018) SNF: Foundation of distributed ledgers in supply chain management: Theory development, practical applicability and critical reflection [fundamental research project]
Journal or Publication Title International Journal of Production Research
Language English
Subjects business studies
information management
HSG Classification contribution to scientific community
HSG Profile Area SoM - Business Innovation
Refereed Yes
Date 2020
Publisher Taylor & Francis
Volume 58
Number 7
Page Range 2124-2141
ISSN 0020-7543
Publisher DOI https://doi.org/10.1080/00207543.2019.1657247
Official URL https://www.tandfonline.com/doi/full/10.1080/00207...
Depositing User Prof. Dr. Erik Hofmann
Date Deposited 26 Aug 2019 13:33
Last Modified 20 Jul 2022 17:39
URI: https://www.alexandria.unisg.ch/publications/257601


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Röck, Dominik; Sternberg, Henrik & Hofmann, Erik (2020) Distributed ledger technology in supply chains: a transaction cost perspective. International Journal of Production Research, 58 (7). 2124-2141. ISSN 0020-7543


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